We live in an on-demand, self-service world. Consumer expectations have changed drastically and the expectation of a service is almost instant. In a country where only 16% of the rural population transacts online, the shortage of ATMs and bank branches is a big concern as the majority of the country’s 134 crore population resides in the rural areas. Barely 5% of the rural areas have access to an ATM. Also due to large distances or work timings, reaching the bank during its working hours is a challenge
Banks are increasingly offering consumers ways to carry out banking activities without the need for human interaction. Banks are doing this with the help of AEPS (Aadhaar Enabled Payment System). AEPS is a new payment service offered by the National Payments Corporation of India to banks and financial institutions using ‘Aadhaar’. Aadhaar is a unique identification number issued by Unique Identification Authority of India (UIDAI). This service can be availed at Customer Service Points (CSPs) managed by Business Correspondents (BCs) using Point of Sale (POS) devices.
NetPaisa being one such financial institution, provides AEPS services across India through its appointed Distributors and Dealers who use NetPaisa Micro ATM PoS machines. Using the AEPS service, customers can withdraw cash or transfer money to another account, just using a mobile number. Money transfer is an important and a necessary service on which a large section of the rural population depends upon. This facility can be easily availed without going to the bank just by using an Aadhar linked bank account and biometric authentication. Also most payments in the tier 2 and tier 3 cities are still done through cash. Though the government is striving hard to push the digital economy, the fact remains that a large number of people depend on cash.
With the help of NetPaisa portal most of the banking transactions can be accessible to a large section of the rural and semi urban population. Not only banking services other financial services like Insurance, Loan etc. can be available through this digital marketplace thereby strengthening the financial inclusion dream of a digital India.